!DOCTYPE html> Tax Pert | Employers may get 30% income tax exemption for creating extra jobs | A Tax Consulting Site

The government is considering a broad range of incentives for employers who create additional jobs, a senior government official told ET.

This is in line with Prime Minister Narendra Modi's commitment to create more jobs. A high-level panel of secretaries recently proposed fiscal and monetary incentives for consideration in the budget, the key one being a 30% income tax exemption for units that create an additional 2% jobs, the official said. The base for calculation is proposed to be total emoluments and will cover all kinds of employees.

Alternatively, the hirer could be given a 125% rebate on provident fund contributions.

Another incentive would be easy, cheap credit through interest subvention. The PM had referred to this in his Independence Day speech last year